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Corporate Strategy 2018–2023Updated for 2020
Corporate Strategy 2018–2023 Update (2020)
Contents March 2020 update ➌Who we are ➎ Vision and Values ➏ What we want to achieve ➐The Board ➒Leadership Group ❿Financial forecasts ⓫
If you need the information in this business plan in large print, Braille, on CD, or explained in your own language, please contact us on 01495 745910.
A Welsh language version of this plan can be found at our website: www.melinhomes.co.uk/publications Printed copies are available on request.
SUSTAINABLE BUSINESS OF THE YEAR 2015
TOP 100 NOT FOR PROFIT2015–2019
Corporate Strategy 2018–2023 Update (2020) ➌
March 2020 update
We have now completed the first two years of our 2018-2023 five-year Corporate Strategy. Our vision is based on a belief that we exist to create opportunities for people and communities to thrive and our strategy has, over the past 24 months, supported us in delivering those opportunities.
2019 has proved to be an exciting, challenging and successful year for us and this update highlights some of the ways we have made progress against our corporate targets. In order to ensure that we are still focusing on the right areas and that our targets are still driving delivery, during 2019 we undertook a review of the areas we focus on as a business and the associated targets and the revised targets are highlighted later in the strategy.
We remain committed to listening to and engaging with our residents and the communities within which they live and working only to their benefit. We recognise that sometimes we are not effective in our engagement and we have been working with residents to look at developing our approach. This work included a campaign to get feedback from a wider variety of residents. As a part of this we launched 100 Voices: a bid to get at least 100 residents working with us through digital platforms and during 2019 we recruited 130 new residents to work with us.
We remain an independent, ethical and sustainable business that delivers growth within our operating area. We continue to be a social landlord at heart, delivering, managing and maintaining affordable housing and supporting people to sustain their tenancies. We have focussed on investing in our core business and increasing our size by building new affordable homes, with 355 new homes built during 2019/20.
In order to maximise the resources available to deliver more affordable homes and deliver core services we have a commercial subsidiary. Candleston has now sold over 90% at our first market sale homes at Coed Glas in Abergavenny. In delivering homes for sale we have a clear understanding of our risk appetite, our financial capacity and the need to protect our core business.
Corporate Strategy 2018–2023 Update (2020) ➍
March 2020 update
We have been working to strengthen our collaboration and partnership working and this approach has seen results which include us working with 36 schools spread over all five of our local authority areas and specialist housing provision at Tŷ’r Hen Ysgol.
We seek to be an agile organisation, with the ability to respond to changing economic and political situations and the needs of our residents. Austerity continues to be challenging for our residents and we have tried to have a positive impact on their lives by supporting them into employment; helping to cut energy bills and minimising service charges; developing relationships with local schools and developing learning and employment opportunities through our partnership company Y Prentis. As part of work to support our residents we aim to keep year one tenancy failures below 5% and in 2019 achieved a rate of only 3.7%.
We have, and continue to, strengthen the way we are governed so that we can deliver our purpose and live our values and focus on operational excellence across the whole organisation. This included: increasing the diversity of our Board; undertaking an independent review of our governance arrangements; and supporting our Board with comprehensive inductions and training programmes.
We are committed to always being a good employer and continue to invest in our people and create a positive working environment and culture. To guide this work we take part in the Best Companies accreditation programme and were delighted when as a result of the feedback from our staff we were awarded three stars and number six on the Best Not-For-Profit Organisations 2020.
Corporate Strategy 2018–2023 Update (2020)
March 2020 update
We operate in an enviroment which has increasing levels of uncertainty associated with it. The Board has spent time consolidating work from previous years, understanding the key issues that impact on our long-term financial sustainability. As a result of this work, the Board now understands what would be needed to mitigate the negative impact of external risks, should they develop.
As an organisation we continue to look forward, to meeting the challenges we will face with enthusiasm, determination and imagination, and to reporting on our continuing journey to providing the highest quality homes and services to the people and communities we serve.
Corporate Strategy 2018–2023 Update (2020)
Who we are
➎
Figure 1: Map showing the five local authority areas Melin owns and manages homes in.
Table 1: Breakdown of homes by local authority area.
Local Authority
Rented Homes
Low cost home ownership
Mortgage Rescue
Other** Total
Blaenau Gwent 352 35 2 29 418 Monmouthshire 834 133 12 149 1,128Newport 596 9 0 60 666 Powys 86 33 0 6 125 Torfaen 1,420 286 30 131 1,867 Other LA* – 15 – – 15Total 3,288 511 44 375 4,219
Figure 2: Housing stock (Figures as of 31st March each year.)
2,7202007
2,8042008
2,9652009
3,0202010
3,1792011
3,5112012
3,7322013
* shared ownership homes in Cardiff, Caerphilly, RCT, and Vale of Glamorgan.
** includes leasehold, homeless leasing, intermediate rents and commercial units.
3,8612014
3,9252015
3,9752016
4,020 2017
4,147 2018
4,219 2019
Powys
Monmouthshire
Torfaen
Blaenau Gwent
NewportOther LA*
Corporate Strategy 2018–2023 Update (2020)
Vision and Values
➏
VisionDelivered by an agile, caring and flexible workforce who has helped us to become one of the Sunday Times 100 Best Not-For-Profit Organisations To Work For, we will create thriving communities in south east Wales. We will build at least 1,000 new affordable homes in these communities and generate at least £5m from commercial sources and through savings achieved from a drive for resident focused operational excellence which we will reinvest in our core services.
ValuesTogether we can:
l Do the right thing
l Find a way
l Make things happen
l Make a difference
l Enjoy the journey
Our vision describes what we want to be over the next five years. It focuses our attention on what is important over the medium term and informs the priorities that we take action on.
Our values describe the approach that we will take when running our business and will guide the behaviour of our people as they seek to deliver our vision.
Corporate Strategy 2018–2023 Update (2020)
What we want to achieve
➐
Great cultureAreas of focus and target to be achieved:
l Best Companies – top 10 by 2023;
l Growing talent – create a new opportunity each year that demonstrates how we grow talent;
l Gender equality in construction – 25% of new recruits to team are women.
Generate income from core-enabling opportunitiesAreas of focus and target to be achieved:
l New homes for sale – 50 market home sales per year;
l Private renting – Develop a private rented offer by September 2020;
To support the delivery of our vision we have developed four strategic pillars: great culture; operational excellence focused on residents; thriving communities and income generated from core enabling opportunities.
Under each of these pillars we have agreed areas of focus and we then set targets that we need to achieve to drive organisational delivery.
These areas of focus and targets will drive the content of our detailed business action plans and budgets. They will also form the backbone of our performance management framework and will help us track progress against the expected strategic outcomes.
Corporate Strategy 2018–2023 Update (2020)
What we want to achieve
➑
Thriving communitiesAreas of focus and target to be achieved:
l New affordable homes – 1,000 new homes by 2023;
l Affordable running costs – Increase the average EPC rating of our existing homes by one point per year until 2023, bring the average to an EPC of B. Our current average is 75.34 – by 2023 we will have an average of 80. Only develop new homes which are low carbon, energy and water efficient by no later than 2021. An annual rolling programme offering energy advice to 15% of our residents, targeting new residents and those living in the most energy inefficient;
l Care through strategic partnerships – Establish strategic care partnership by 2023;
l Specialist housing provision – 50 additional units of specialist housing provided (excluding housing for older people);
l Schools programme – Extend the relationship that we have developed with schools in all key locations by 2023;
l Sustainable employment opportunities for residents – 50 residents per year moved into sustainable employment;
Tenancy sustainment support – Year one tenancy failures reduced to 5% by 2023.
Operational excellence focused on residentsAreas of focus and target to be achieved:
l Develop our knowledge and understanding about our assets – Complete 100% of stock condition surveys over a five-year rolling programme;
l Delivering a maintenance service that is valued by residents – In partnership with residents, develop a new maintenance offer by September 2021;
l Ambitious and resilient people – Creation of a people strategy by end of 2019 and delivery of this strategy by 2023 of the Corporate Strategy;
l Minimising service charges – All non-essential service charges designed out on new schemes within three years. Create a new service charge policy based on good data obtained from stock condition surveys from April 2022. All existing service charges reduced by 25% by 2023;
l Digitally included residents – 75% of all contact from residents is undertaken online by 2023.
Corporate Strategy 2018–2023 Update (2020)
The Board
➒
Julie Thomas CHAIRRNMH, Dip. Nursing, MScRetired Divisional Director of Community Services with Aneurin Bevan University Health Board.
Anthony Hearn VICE CHAIRMSc Management (Innovation in Social Enterprise); BA (Hons) Sociology and Social ServicesDirector of Housing & Communities at Merthyr Valley Homes.
Wendy BowlerMSc (Health); MSc Cert, Genealogical, Palaeographic and Heraldic StudiesFollowing a career in the civil service and then public health, Wendy is now a professional genealogist.
Lisa HowellsSales & Marketing Director for Curo Group with more than 20 years’ of property experience within the housing sector; member of the Housebuilding Federation and the National Housing Federation.
Clifford Lloyd Jones ACIB, Cert PFS (MS) A retired banker, Financial Advisor and Relationship Director for the Social Housing Sector, Education and Local Authorities for Barclays in Wales.
Sarah Bees MSc Sarah has a health and social care background, and is currently a Policy & Project Officer for the Gwent Regional Partnership Team.
John JacksonWith over 25 years marketing experience, John is a strategic marketing consultant. His private practice specialises in brand development, innovation strategy and marketing communications.
Gareth ThomasGareth began his career as a carpenter with Powys Council and worked his way up to an HNC in Construction. Recently moving to Alliance Homes in England as a Technical Manager he still wanted to be part of Welsh housing so joined our board.
Chris EdmondsonMSc Cert. EdFreelance management researcher, adviser and editor.
Martin ReedMartin is a retired finance director of Brains Brewery. He had worked there for 17 years before retiring in June 2019. He is also a non-executive director of Welsh Whiskey.
Corporate Strategy 2018–2023 Update (2020)
Leadership Group
❿
Paula KennedyChief Executive
Paula has held leadership positions for over 20 years of her career. Formerly the Chief Executive of Brunelcare Housing Association. She is also an executive member of the Melin Board.
Peter Crockett FMATT, FCCA
Deputy Chief Executive Growth & Business Development
Held senior posts in the housing association sector since 1995 where he has gained considerable experience in all aspects of strategic finance, including loan funding as well as all other support services. Peter is also an executive member of the Melin and Candleston Boards.
Adrian HuckinFCIH, BA (Hons)
Executive Director Innovation, Culture & Improvement
Adrian joined Melin Homes in September 2010 having previously worked in senior positions in both the public and housing association sectors. He is a Company Director of Y Prentis.
Dave CookMCIH, MBA, MSc
Executive Director People, Homes & Communities
Dave has been Director of Customer Services since 2009. He is responsible for Housing and Asset Management services and the Direct Work Force. He is a Company Director of Y Prentis.
Corporate Strategy 2018–2023 Update (2020)
Financial forecasts
⓫
Balance Sheet 2021 Budget
2022 Forecast
2023 Forecast
2024 Forecast
2025 Forecast
£ 000s £ 000s £ 000s £ 000s £ 000s
Fixed assets 310,109 331,279 356,583 382,589 389,178
Current assets 22,967 23,414 23,906 24,401 24,897
Total assets 333,075 354,694 380,489 406,990 414,074
Monies owed by Melin 313,099 333,262 357,151 381,569 386,130
Reserves 19,977 21,432 23,339 25,422 27,944
Gearing (Historic cost) 38.54% 40.26% 42.79% 44.47% 42.00%
Income & Expenditure Account Forecast
2021 Budget
2022 Forecast
2023 Forecast
2024 Forecast
2025 Forecast
£ 000s £ 000s £ 000s £ 000s £ 000s
Income 23,071 24,782 26,400 28,159 29,870
Expenditure 18,849 19,496 20,168 20,689 21,307
Operating surplus 4,221 5,287 6,232 7,470 8,563
Interest payable & other activities
3,540
3,831
4,325
5,387
6,040
Surplus 682 1,456 1,907 2,083 2,523
Interest cover 1.35 1.51 1.59 1.55 1.58
